Debt Consolidation Advisors

Utah Debt Relief Laws

Without a fair debt collection law, consumers in Utah must refer to the federal Fair Debt Collection Practices Act. (FDCP) if they’ve been victimized by a debt collection agency. Some important highlights include:

Collectors cannot use inappropriate or obscene language or make threats

Calls must be made between 8am and 9pm unless you specify otherwise

Calls made to you at work cannot be made if your employer disapproves

Debt collectors cannot correspond with debtors via postcard or use an envelop that indicates its from a collections agency

If you send a cease and desist letter via mail, the collector cannot contact you again except to tell you they are taking legal action against you

During communication (whether in person or by phone) creditors must state his name and not misrepresent who he works for (i.e. cannot say he is a cop or an attorney)

The debt collection agency cannot imply that you’ve committed a crime or threaten to sell your debt in an attempt to collect

You cannot be contacted by a debt collector if you are being represented by an attorney

If a debt collection agency violates the law, Utah consumers are urged to file a complaint with the Utah Division of Consumer Protection. If the collector has broken the Fair Debt Collection Practices Act (FDCPA), Utah consumers can be awarded damages of up to $1,000.

Utah Statue of Limitations (SOL)

Utah has a four-year statue of limitation (SOL) on open accounts such as credit cards, meaning that the creditor can contact you for up to four years. For written contracts creditors can pursue you for up to six years. Consumers can consider Utah debt settlement during the time the account remains open.

In terms of non-income protection from wage garnishment, Utah provides protection in several areas:

Pensions: state workers and private retirement benefits or pensions are protected

Insurance and annuity protection--since not all insurance and annuities are protected, debtors are urged to contact an attorney to determine exemption, however Utah protects disability, illness, medical and fraternal society benefits

Utah Credit Card Debt Relief Act of 2010

The Credit Card Debt Relief Act of 2010 has streamlined the methods for repaying debt and regulated how collectors work with debtors. The Act has impacted debt relief collections several ways:

The number of fraudulent or weak performing credit card companies are gone

Reduces the chances of falling victim to fraudulent debt settlement companies due to new Federal Trade Commission (FTC) reforms

Increased, open communication from creditors--more information is provided to help you eliminate your loans